Anderson pulls the plug at Optus

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Optus chief executive Chris Anderson will step down after seven years at the helm of Australia's second largest telecommunications company and hand over the reins to the chief operating officer, Paul O'Sullivan.

"I think its time for a generation change and for me to move on after seven years," said Mr Anderson, who will retire at the end of August. He played down the timing of his departure which coincides with the search for a new chairman at Optus's main rival, Telstra.

"I am not going anywhere, there is no hidden agenda," Mr Anderson said. "Why on earth would I want to work against something that I have spent seven years of my life building up?"

Former Telstra chairman, Bob Mansfield, and current chief executive, Ziggy Switkowski, both previously headed Optus, which later was floated on the Australian Stock Exchange and acquired by Singapore Telecom, under Mr Anderson's reign.

His name has also been linked with other high profile companies such as Kerry Packer's Publishing & Broadcasting Ltd and Herald publisher John Fairfax, which Mr Anderson briefly headed in the early 1990s.

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"I started when I was at university as a copy boy for Frank Packer and that was a long long time ago; my view is I just want a break after that amount of time," Mr Anderson said.

While a future career in the boardroom was not ruled out, Mr Anderson insisted that the only item on his agenda at the moment was charity work but would review his position in the new year.

Optus and SingTel portrayed the changes as an orderly succession at the telecom which now provides more than 65 per cent of SingTel's revenues.

Mr Anderson said that Mr O'Sullivan's promotion to the role of chief operating officer three years ago was taken with the "aim that he would succeed me", with his retirement then flagged with the SingTel board before Christmas.

Analysts played down the significance of the move, pointing out that Mr O'Sullivan had been effectively running Optus from his current position.

"Chris is more the statesman/politician," said one industry observer. "Paul O'Sullivan is clearly considered the real operator."

The announcement came one day ahead of the release of Optus-Singtel's results for the year to March 31.

The group is expected to report a $S4.03 billion ($3.3 billion) net profit, according to JP Morgan.

Optus is expected to lift its earnings before interest, tax, depreciation and amortisation by 40 per cent to $1.89 billion. The company has also successfully continued to take market share away from Telstra in the crucial mobile market.